iShares China Large-Cap ETF (FXI) Drops As Trade Tensions Resurface, Economic Data Sends Mixed Signals

The iShares China Large-Cap ETF FXI, which tracks the performance of 50 of the largest Chinese companies listed in Hong Kong, fell 1.91% to $34.94 on Friday afternoon, under pressure from renewed U.S.-China trade tensions and broad market weakness.

A federal appeals court temporarily reinstated most of the recent tariffs imposed by President Donald Trump, pausing a lower court ruling that had invalidated them. The stay allows the administration to continue its appeal, further stoking U.S.-China trade tensions.

What To Know: Friday’s decline also comes as President Donald Trump accused China of "totally" breaching a prior tariff agreement, sparking fresh fears of a trade war resurgence. Reports indicate the White House is preparing expanded tech sanctions, potentially targeting companies with indirect links to already-sanctioned entities.

These geopolitical jitters weighed heavily on global markets. The S&P 500 lost 1% and the Nasdaq-100 dropped 1.3%, with only defensive sectors managing gains.

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Economic data added to investor uncertainty. While the Fed's preferred inflation gauge, the core PCE index, cooled to 2.5% year-over-year in April, suggesting subdued price pressures, consumer spending growth slowed sharply to 0.2%, signaling softening demand.

At the same time, consumer sentiment remained at a three-year low, and inflation expectations for the next year surged to 4.5%. FXI’s sharp drop Friday reflects investor anxiety over both external trade risks and internal U.S. economic fragility, as sentiment shifted away from risk assets heading into the weekend.

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According to data from Benzinga Pro, FXI has a 52-week high of $38.73 and a 52-week low of $24.59.

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